You Should Know 

About Credit Unions 









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Copyright 1917 

Massachusetts Credit Union Association 


You Should Know 

About Credit Unions 



A MANUAL 

PUBLISHED BY THE 

Massachusetts Credit Union Association 





OFFICERS 

OF THE 

MASSACHUSETTS CREDIT UNION 
ASSOCIATION 

Felix Vorenberg .... President 
Edward A. Filene . First Vice-President 
Abraham K. Cohen Second Vice-President 
Leon Strauss . Third Vice-President 
Max Mitchell .... Treasurer 
J. C. Bills, Jr., Secr'y and Managing Director 


©Cl. A 481121 


DEC 26 1917 




































































: a 











. 






















Table of Contents 

(Credit Union Manual) 

PAGE 


Why Credit Unions are Needed. . 9 

When a man needs money ... 9 

Buying at Cash.10 

The Loan Shark.10 

Encouraging Savings.11 

Small, Safe Investments . . . . 12 

The Need of Credit .13 

The Peoples Bank .14 

The People are the Stockholders . 14 

The Control is Thoroughly Democratic 14 
Its purpose is Co-operation and Self 

Help.15 

A Business Education.15 

The Credit Union Operations . . 16 

A little Savings Bank.16 

Share Investments.16 

Loans .17 

Meets Needs of Borrowers and Investors 18 
The Wheat from the Chaff ... 18 

Credit Unions Help Bans ... 19 

Not a Competitor to Trust Com¬ 
panies, Savings or Co-Operative 

Banks.19 

The Credit Union and Thrift . . 21 

Credit and Character .... 22 









Legislative Authorition .... 24 

The Massachusetts Banking System 25 
How to Start a Credit Union . . 26 

The Organization is simple ... 26 

The Expense is insignificant ... 26 

The Massachusetts Credit Union Assoc, 
will attend to details . . . . 27 

How to Operate a Credit Union . 28 

Location of the office.28 

Duties of the officers.28 

Serving the members.28 

History of the Credit Union . . 29 

Early origins.29 

Development Abroad.29 

Introduction into the United States . 30 

Growth of Credit Unions in Massa¬ 
chusetts .31 

Number and Membership .... 31 

Assets.32 

Business done.32 

Growth during 1915-1916 .... 32 

Start a Credit Union.34 

In your town or city.34 

In your store of factory .... 34 

In your church or society . . .35 

In your labor or trade organization . 36 

In your lodge or club.36 

Classified List of Credit Unions . 37 

The Credit Union Law.41 

Charter of Mass. Credit Union 
Association.,53 

























































GF 

ft 


3 


WHY CREDIT UNIONS ARE NEEDED 

The Legislature of Massachusetts author¬ 
ized the incorporation of Credit Unions to 
meet existing needs. Those needs are greater 
today than ever before. The Legislature 
has done its part, it is now up to you to 
do yours. 


When a Man Needs Money 

The operations of the “Loan Sharks,” the 
big work of the remedial loan associations 
and the charity societies are all eloquent 
proof of the vital and extensive need of small 
loans by honest men. You undoubtedly 
know of cases where honest and good men 
are “up against! it.” You also know that 
such men conceal their difficulties as long as 
possible, for pride does not relish acknowledge¬ 
ment of defeat. 

What can these men do? Most of them 
do one of three things — they “touch” a 
friend for help, or they apply to some chari¬ 
table or philanthropic organization, or, forced 
by pride, they prefer to go to the “loan 
shark.” In the first two cases they pauperize 
themselves; in the last they sell their economic 
independence for weeks or months, and fre¬ 
quently pay two dollars for one received. 







WHY CREDIT UNIONS ARE NEEDED 


And all for a small sum — fifty or a hundred 
or two hundred dollars! 

Not so urgent but quite as important is 
the time that comes in the affairs of many 
men when, if they had a few dollars, they 
could materially better their condition. 
Such times must be “seized at the flood”or 
the tide ebbs never to return. Eventually, 
the man of means profits and the other fellow, 
for lack of a few dollars, continues in the 
well-trodden path and complains of his hard 
luck. 


Buying at Cash 

“Your credit is good at the Soak-em 
Store* ” “Money if you have it — credit 
if you want it!” Many an illegitimate 
installment house attracts the wage earner 
by such advertisements. The method offered 
may be unsatisfactory and costly — but if 
he has no money the wage earner is forced 
to utilize it. 

The Credit Union will meet this need. It 
will enable the honest man to get cash and 
buy his necessities most economically. He 
tian take advantage of sales; he can get cash 
discounts; he can buy in quantity. 

The Loan Shark” 

Let’s call him “Tom.” Three years ago 
he borrowed $ 25.00 from a loan shark. He 
10 




WHY CREDIT UNIONS ARE NEEDED 


has paid $ 101.25 and still owes $ 23.00 on the 
principal and $ 9.83 interest. Tom’s case is 
representative of hundreds. 

There are fifty-six small loan agencies in 
Boston and forty-four in other cities of 
Massachusetts. These agencies can charge 
three per cent per month. They are doing 
an enormous business and — take note of 
this — so long as there are no better means 
of providing small loans they will continue 
to prey upon the poor man. There are many 
sound reasons for the existence and growth 
of the Credit Union, but even if there was 
only this evil of the loan shark to consider, 
that would be enough in itself to justify the 
development of the Credit Union as a bene¬ 
ficent institution. 


Encouraging Savings 

The credit union also receives deposits 
like a savings bank. It is an ever present 
inducement to "save a dollar”—and that 
in an institution of which the depositor is 
a member. It is located at the employee’s 
elbow, in the store or factory where he works 
or at the corner near his home. It is where 
he can get at it with least inconvenience and 
loss of time. No need to go to the savings 
bank and wait in line and lose half an hour 


II 





WHY CREDIT UNIONS ARE NEEDED 


from work. Furthermore, the man who 
receives 25 or 50 cents at the Credit Union 
is a friend, and the depositor does not hesitate 
to deposit even a few pennies. 

A few pennies a week and the dollars 
accumulate. The value and the habit of 
thrift are taught, not theoretically, but from 
actual experience. 


Small, Safe Investments 

“How can I invest a few dollars safely?” 
How often that question is asked, and how 
frequently answered falsely! The glowing 
advertisement of the “Wildcat Mining Co.,” 
draws the poor man’s savings and he never 
sees them again. 

The credit union answers the question. It 
not only offers its members a profitable and 
safe investment, but it teaches them the 
value of investments. He learns to make 
his money work for him. 

The credit union is state authorized and 

supervised — it is safe. 

0 


12 




a 


=3 


THE NEED OF CREDIT 

Nearly every man has times when he needs 
and ought to be granted credit. Unexpected 
emergencies or needs that could not be pro¬ 
vided for bring the wage earner and small 
salaried man face to face with the need of 
money. 

Sickness, improvements in business or 
position, family needs, debts — so many 
debts — the opportunity of purchasing at 
lower prices; these are a few of the many 
legitimate causes for credit. 


13 






IF 


THE PEOPLES BANK 

The name ‘‘Credit Union” is unfortunate 
for it does not convey a correct idea of the 
purpose of the institution. In many coun¬ 
tries they are called ‘‘Peoples Banks” and 
that is exactly what they are. 


The People are The Stockholders 

Every borrower and every depositor must 
be a shareholder. The ownership of one 
share of stock is requisite to membership. 
All who deal with the Credit Union have, 
therefore, the interest of the organization at 
heart for it is “their bank.” 


The Control is Thoroughly Democratic 

Each member has but one vote irrespective 
of the number of shares owned. Voting by 
proxy is prohibited. Control cannot be 
centralized in one person or a small group. 
It is an institution made up of the people, 
controlled by the people and run for the 
people — truly a ‘‘peoples bank.” 


14 


w m 







THE PEOPLES BANK 


Its Purpose is Co-operation and Self-Help 

The Credit Union is a co-operative form 
of banking. It pools the capital of its members 
for their mutual benefit. It enables it mem¬ 
bers to help themselves. 


A Business Education 

The Credit Union is democratic in its 
control. Each member has equal vote. The 
bigger policies are determined by the members 
who also elect the officers. The director s 
meeting brings out the principles of banking 
— interest, dividends, membership, loans, 
etc. It is the school of experience, guided by 
the law and supervised by the State officials. 
Credit, thrift and investment — how, why 
and when? The simple but effective methods 
of bookkeeping guide and record their tran¬ 
sactions. There is no attempt to deal in 
matters of high finance, nor in complicated 
problems of banking — but the fundamentals 
of banking are faced and mastered.^ The 
wage-earner, the clerk, the man of hard 
common sense but little schooling come to 
appreciate the meaning and operations of 
our financial system. 


15 




JJ 


G= 


THE CREDIT UNION OPERATIONS 

The Credit Union preforms three principal 
functions — it receives deposits, sells shares 
and makes loans. 


A Little Savings Rank 

The Credit Union receives deposits like a 
savings bank. Small sums as low as 5 cents 
or 10 cents or 25 cents may be deposited. 
Its pass book records the savings of its 
members. On deposits interest is paid, — 
the average of the Credit Unions last year 
being approximately 4 % per cent. 


Share Investments 

The Credit Union sells shares to its mem¬ 
bers. These shares are 4 > 5-00 or $ 10.00 par 
value and are easily within the reach of the 
small investor, Furthermore, they may be 
purchased on installments of 25 cents or 
more a week or month. Not only are these 
safe, attractive investments, but they present 
an incentive to save by investing in them. 

On his shares the credit union member 
receives dividends. The average dividend 
paid by the credit unions of Massachusetts 
last year was 6}/± per cent — a profitable 
investment. 


16 








THE CREDIT UNION OPERATIONS 


Thus the wage earner becomes an investor 
— an owner of securities — a small capitalist. 
His money works for him. He comes to 
appreciate better the value of capital in the 
world’s work. 


Loans 

The Credit Union makes loans to its 
members for provident purposes. In doing 
this it abolishes the need for the professional 
money lenders. It enables its members to 
get legitimate, self-respecting and proper 
credit. It aims to capitalize character. 

Credit Union loans may be of any size. 
The majority of them are from $25 or $50 
to $100 or $200. They are repaid in small 
weekly or monthly installments. Both larger 
and smaller loans are made, however, depend¬ 
ing on the needs of the borrowers and the 
facilities and policies of the credit union. 
The Board of Directors of each credit union 
fixes the rates of interest charged on loans. 
The legal maximum is 12 per cent and 
many credit unions charge considerably less. 

The rates are low because the losses are 
insignificant, the overhead expenses ex¬ 
tremely low and the borrowers, being mem¬ 
bers, are able to protect their interests. 
Furthermore, all borrowers as shareholders 
receive their proportion of the dividends 
17 




THE CREDIT UNION OPERATIONS 


earned from interest paid by them as bor¬ 
rowers, which reduces the net amount of 
interest they pay on the money borrowed. 

Meets Needs of Borrowers and Investors 
The purpose of the Credit Union is to 
meet and balance the needs of borrowers 
and investors to their mutual advantage. 
All borrowers are members and an average 
of one-fourth of the members are borrowers 
all the time. It is safe to say that a majority 
of the members are borrowers at some time. 

This is fundamental in the Credit Union 
idea — its operations are not dominated by 
those who are using it as an investment. IPs 
policies are shaped by both — borrowers and 
investors, who are often the same persons — 
and are intended, therefore, to meet their 
common needs most advantageously. 

The Wheat from the Chaff 
Ask the money lender! He will admit big 
profits made on Peter and John. But he 
says “I lost on William and Samuel, they are 
dead beats.” Admit it, why should Peter 
and John pay for the rascality of William 
and Samuel? 

The credit union sifts the wheat from the 
chaff. The thrifty and honest are known 
and trusted — the shiftless and dishonest 
are thrown out, forced to work and educated 
in the ideals of thrift and honor. 




If 

H= 


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a 


CREDIT UNIONS HELP BANKS 

The Credit Union not a Competitor with Savings 
Banks, Trust Companies or 
Co-operative Banks 

The Credit Union is growing because a 
need exists which the older banking insti¬ 
tutions do not and cannot meet. It is a 
feeder rather than a competitor to them. 

The savings bank, for example, reaches a 
certain clientage which it is trying to increase. 

It is a problem of education, for people must 
be taught to save. The Credit Union is the 
school. It is conveniently located at the 
corner, or in the store or church or factory, 
and secures the small deposits of its members. 
Thus the members are taught .the value of 
saving, and as their financial operations 
increase, they become patrons of the savings 
bank which, with its larger operations and 
resources, can offer them more adequate ' 
accommodations. 

Take the co-operative bank as a further 
example. In theory the credit union per¬ 
forms some of the functions of the co-opera¬ 
tive bank, but in fact the loans made by 
credit unions in places where co-operative 
banks are operating, which could be handled 
by the latter, are insignificant. The co¬ 
operative bank cannot offer the facilities 


19 








CREDIT UNIONS HELP BANKS 


for small savings of the credit union; nor 
can it make loans for the hundred and one 
purposes that the credit union can take care 
of. And when the time comes that the 
credit union member wishes to buy a home 
he has saved something and, most important 
of all, he has learned to appreciate the service 
that the co-operative bank can render him. 
Every co-operative bank ought to have a 
credit union operating among its members. 

As to Trust Companies, State and National 
Banks, there cannot be any competition. 
But for the possible patrons of these banks 
also, the credit union is a school. 

In towns where there are none of the older 
banks, the credit union will serve a most 
useful purpose — and it will pave the way 
for the later establishment of a savings bank, 
co-operative bank, etc. 


20 




51 

3 


P 

\k 


THE CREDIT UNION AND THRIFT 

The credit union is the greatest thrift 
promoter in the world. It teaches people to 
save; it gets them in the habit of saving. 

The member who borrows pays back his 
loan in small installments. He finds — 
frequently to his own surprise — that he can 
save and after the loan is repaid he continues 
to place his savings in the Union. 

The deposit department is always open 
and so convenient that it is a constant incen¬ 
tive to save a few pennies. The shares offer 
attractive investments within the reach of 
every member. 

Thus the operations of the credit union 
promote saving. They make it easy to save 
and offer effective incentives to save. During 
the fiscal year ending October 31, 1916, the 
shares in Massachusetts Credit Unions in¬ 
creased in amount 73 per cent and the de¬ 
posits 128 per cent. On that date the 11,418 
members of Credit Unions had an average 
of $29 in deposits and $38 in shares, a total 
of $67 savings for each member. This record 
is most remarkable. 


21 








CREDIT AND CHARACTER 


Iff 


H 

3 


Credit is the life of modern business. It 
is popularly supposed to be based on security 
of a negotiable nature, but actually the 
character of the borrower enters quite as 
much into most credit transactions as mort¬ 
gages, pledges and other securities. The 
late J. Pierpont Morgan stated publicly that 
the first requirement in granting a loan of 
a million dollars would be the character of 
the borrower. The lawyer and the doctor 
and the small merchant who come in contact 
with the masses of the people will confirm 
Mr. Morgan’s statement, though the credits 
granted be for $10 or $100 only. 

Character is vital. Within the limits of 
his ability, the wage earner is just as safe 
a risk as the big merchant. That the loan 
agencies make money is eloquent proof of this 
statement. 

Yet the established banking .systems have 
no means of adequately capitalizing char¬ 
acter. Without the bank rating and nego¬ 
tiable security, one cannot obtain credit. 

The credit union capitalizes character. 
It says to the borrower “We will trust you 
in so far as - possible, on your character 
rating.” To those familiar only with the 
older banking institutions of America, this 
may sound fantastical. It is not. It is 


22 









CREDIT AND CHARACTER 


fundamental in the operations of some 65,000 
institutions, with 15,000,000 members doing 
an annual business of seven billions of dollars 
and operating in nearly every civilized country. 
And the percentage of loss of these “Peoples 
Banks” is less than that of any other banking 
system. 


23 




£ 

a 


S3 

£3 


LEGISLATIVE AUTHORIZATION 

If you were to receive a formal notification 
from the Legislature of our Commonwealth 
saying: 

“Sir, a law has just been passed of special 
benefit to you,” what would you say? Surely 
your reply would be, “Good, tell me about 
it.” 

The Legislature has passed such a law in 
providing for the incorporation of credit 
unions and it has authorized this Association 
to “tell you about it.” These statements 
can be proven by turning to the statutes of 
Massachusetts. 

Credit Unions are organized under general 
act of the Legislature, chartered by the 
State Board of Bank Incorporation and 
supervised and inspected by the Bank Com¬ 
missioner. Before the law they stand on the 
same footing as savings banks, trust com¬ 
panies or co-operative Banks. As has been 
said, the Legislature authorized Credit Unions 
to meet a need, not to compete with the 
other banks but to supplement them. *(See 
page 41 for law on Credit Unions). 


24 








If 

Es 


=3 


THE MASSACHUSETTS BANKING SYSTEM 

The Credit Union is the latest system of 
banking to be authorized in Massachusetts. 
It popularizes banking. It enables the wage 
earner to be in effect, his own banker. It 
supplements the facilities offered by the 
older institutions. 

The Credit Union is safe. The Legisla¬ 
ture has provided for its transactions, and 
the chance of loss or defalcation is reduced 
to a minimum. There is also the state super¬ 
vision and inspection. The treasurer is, of 
course, bonded. His operations are, of 
necessity, open and known. A very small 
surplus is carried. 

The Credit Union brings the money out 
of the stocking and the secret place. It 
puts it in circulation and sets it to work. It 
provides a means of effectively utilizing the 
savings of the people. 


25 







Efe 


3 


HOW TO START A CREDIT UNION 

The Organization is Simple 

Eleven persons can organize a credit union. 
The details of organization are prescribed by 
law and are not difficult. 


The Expense is Insignificant 

The expense of organization is not heavy. 
The charter costs $5.00, the public advertise¬ 
ments cost, depending upon the local adver¬ 
tising rates, $5 to $8, the bond of the Treasurer 
is $5.00 and the supplies for one year total 
about $25. Office rent is generally obtained 
gratis but both office rent and clerical as¬ 
sistance should be very low. The law requires 
that the Directors, and Credit and Super¬ 
visory Committees serve without pay. It 
is interesting to note that the expense account 
of the Credit Unions last year totaled only 
$8,092.99, a decrease of 43 per cent over the 
year preceding. This was an average expense 
for the year of $153 per Credit Union. On 
this expense they did a business of $1,267,- 
092.84. 


26 








HOW TO START A CREDIT UNION 


The Massachusetts Credit Union Associaticn 
Will Attend to the Details 

The Massachusetts Credit Union Asso¬ 
ciation offers its services free of charge. It 
will attend to the details of organization, the 
necessary legal work, etc. as it has done in 
dozens of cases. 


27 








If 


HOW TO OPERATE A CREDIT UNION 
Location of the Office 

The office of the Credit Union should be 
conveniently located. It is frequently in 
the home of one of its members; in the 
section of the city near the homes of its 
members, or in the lodge or church, store or 
factory in which it operates. The important 
feature is that it shall be accessible. It 
should also be open at such hours as are most 
convenient for its members. 

Duties of the Officers 

The operations of a credit union are in the 
hands of its Board of Directors and its credit 
and supervisory committees. The directors 
elect from their number the president, vice- 
president, treasurer and clerk. Their duties 
are indicated by their offices. The Credit 
Committee passes upon all loans. The 
Supervisory Committee is an auditing com¬ 
mittee with general supervisory powers. 

Serving the Members 

The Credit Union is an organization of 
persons and not of shares. Its members 
direct and benefit from its operations. They 
naturally make such regulations as will best 
serve their needs. 


28 


& 









w 

& 




HISTORY OF THE CREDIT UNION 
Early Origins 

Co-operative banking has been recognized 
for centuries. The successful modern forms, 
of which the Credit Union is an illustration, 
date from the organization of the Schulze- 
Delitzsch and Raiffensen banks of Germany 
in the middle of the last century. 


Development Abroad 

These co-operative credit associations, soon 
after their origin in Germany, spread rapidly 
throughout continental Europe, and later 
to Egypt, India, Canada and other British 
colonies. There are today over 65,000 such 
associations with 15,000,000 members doing 
an annual business of $7,000,000,000. 

A close and thorough student of these 
“Peoples Banks” in Europe has said: 

“It has regenerated and accelerated agri¬ 
culture, commerce and industry. It has 
stamped out usury and raised millions 
of human souls from the depths of 
despair to lives of hopefulness and 
service. It has supplanted shiftlessness 
by industry; improvidence by thrift; 


29 








HISTORY OF THE CREDIT UNION 


individual effort by concerted action — 
in fact has proved to be one of the most 
potent moral, educational and social 
forces in the history of civilization and 
in the enrichment of the life of the 
common people.” 


Introduction Into The United States 

It was not until 1909 that the Legislature 
of Massachusetts, the first legislative body in 
the United States to recognize this powerful 
and thrift-educating form of banking, autho¬ 
rized their incorporation under the name of 
Credit Unions. Since that date New York, 
North Carolina, Rhode Island, Texas, Cali¬ 
fornia, New Hampshire and Wisconsin have 
taken official action with regard to these 
little “Peoples Banks.” 


30 






1 


n 


51 


GROWTH OF CREDIT UNIONS IN 
MASSACHUSETTS 

Massachusetts has, however, continued to 
lead in the credit union movement. In 
number of organizations, in membership and 
in business done the Credit Unions of Massa¬ 
chusetts are ahead of those of any other state. 

The figures presented in this manual re¬ 
garding the Credit Unions of Massachusetts 
are taken from the 1916 report of the Bank 
Commissioner and are as of October 31, 
1916. Since that date there has been a large 
increase in the operations of credit unions 
but there are no later official figures available. 


Number and Membership 

The first Credit Union was chartered in 
1910. On October 31, 1916, there were 53, 
on July 1, 1917, there were 61. The growth 
in membership has been rapid but healthy. 


October 31, 1910 

“ 31, 1911 

“ 31, 1912 

“ 31, 1913 

“ 31, 1914 

“ 31, 1915 

“ 31, 1916 


105 members 
1,623 
2,862 
4,577 
6,149 
7,846 
11,622 


31 
















GROWTH IN MASSACHUSETTS 


Assets 


Convincing evidence of the stability of 
credit unions is the growth of their assets. 


October 31, 1910 

“ 31, 1911 

“ 31, 1912 

“ 31, 1913 

“ 31, 1914 

“ 31, 1915 

“ 31, 1916 


$2,448.50 

26,983.11 

94,080.46 

184,808.61 

279,358.33 

431,599.48 

816,553.07 


Business Dene 


Year ending October 31, 1910 
“ “ “ 31, 1911 

“ “ " 31, 1912 

« “ “ “ 31, 1913 

“ “ “ 31, 1914 

“ “ “ 31, 1915 

“ “ “ 31, 1916 


$5,923.45 

43,121.71 

187,606.67 

417,980.07 

591,059.21 

726,567.53 

1,263,502.04 


Growth During 1915 — 1916. 


The following table gives the growth of 
the credit unions of Massachusetts during the 
fiscal year ending October 31, 1916, and a 


32 














GROWTH IN MASSACHUSETTS 


comparison of that year with the preceding 
fiscal year. 

Per Gent of 



1916 

1915 Increase 

No. of Unions 

53 

47 

11 

No. of Borrowers 

3,623 

2,837 

25 

No. of Members 

11,418 

7,846 

45 

Loans. 

$652,385.78 

$362,430.36 

80 

Cash .... 

124,310.92 

49,103.42 

153 

Expense Account \ . 

8,092.99 

13,572.82 

43 

Investments 

30,349.53 

5,032.86 

503 

Shares .... 

436,164.36 

252,218.00 

73 

Deposits .... 

328,102.61 

142,592.41 

128 

Guarantee Fund 

15,394.90 

7,768.33 

98 

Earnings 

25,596.08 

17,974.36 

42 

Gross Assets 

816,443.08 

431,599.48 

89 

Total Receipts . 

1,267,092.84 

726,567.53 

74 


f Decrease. 


33 






START A CREDIT UNION 
In Your Town or City 

Every town should have a Credit Union 
and every city should have several to meet 
the needs of its residents. You can interest 
your friends. A little of your time will help 
hundreds of your fellow citizens to help 
themselves. This is better than charity. 

Examples of successful town or city Credit 
Unions are those at Beverly, Lawrence, 
Revere, Mansfield, etc. (See classified lists 
of Credit Union Page 40). 


In Your Store or Factory 

An employer with fifty or more employees 
has a field for a successful credit union. It 
is almost an ideal field. The employees 
know each other and have common interests 
that insure the safe and successful operations 
of their Credit Union. 

Furthermore, there is no form of welfare 
work that is more effective than the credit 
union. The employees are helping them¬ 
selves. Nothing causes contentment like 
freedom from financial worries. The thrifty 
employee is the best employee; the employee 
that is in debt is not so efficient. Many 
employers are granting their Credit Unions 
office room without charge. 

34 








START A CREDIT UNION 


Examples of successful store and factory 
credit unions are those operating among the 
employees of the Gilchrist Company, the 
Leopold Morse Company, the Dennison 
Manufacturing Company, the Waltham 
Watch Company, the New England Telephone 
& Telegraph Company, etc. (See classified 
list of Credit Unions Pages 38 and 39). 


In Your Church, Lodge or Society 

The church and lodge are natural units 
excellently adapted to the credit union. There 
are common interests and the members are 
acquainted. Such an institution operating ex¬ 
clusively in a church or society can be of 
inestimable benefit to its members and 
enable them to reach out and serve material 
needs in a businesslike manner. 

Examples of successful credit unions operat¬ 
ing among the members of churches and 
societies are La Caisse Populaire Credit 
Union of Worcester, the Augustov Credit 
Union of Boston, the Brockton Credit 
Union, etc. (See classified list of Credit 
Unions Pages 37 and 38). 


35 




START A CREDIT UNION 


In Your Labor or Trade Organization 

Each labor or trade group should have its 
credit union. It will keep the members out 
of the hands of the “loan sharks,” it will 
teach them the elements of banking, it will 
develop thrift. The office, trained officers 
and the field of operations are all provided 
for by the labor union. Utilize them for the 
material help, of your members by organizing 
a credit union. 

Examples of successful credit unions operat¬ 
ing within labor or trade groups are the 
Worcester Central Labor Credit Union, the 
State Street Credit Union, etc. (See classi¬ 
fied list of Credit Unions Page 39.) 

Among the People of Your Race 

Give all of the people of your race credit 
union accommodiations. The common 
interests and the other essentials are all 
provided for. Help them to make more 
rapid progress in the country of their adop¬ 
tion. Some of the most successful credit 
unions of Massachusetts are operating among 
racial groups. The following are a few of 
many such credit unions: The Workers’ 
Credit Union (Finnish), the Skandia Credit 
Union (Scandinavian), St. Jean Baptiste 
Parish Credit Union (French Canadian), 
New England. Credit Union (Jewish), etc. 
(See classified list of Credit Unions Page 39.) 




GF 

a 


^3 


CREDIT UNIONS IN MASSACHUSETTS 
SHOWING THEIR DIVISIONS INTOJRACIAL, 
INDUSTRIAL AND OTHER GROUPS. 

RACIAL. 


Italian 

Antica Eclano Credit Unon . . Boston, Mass. 


Scandinavian 

Skandia Credit Union. . . . Worcester, Mass. 


Finnish 

Workers’ Credit Union *r. . . . Fitchburg, Mass. 


French Canadian 

Jeanne D’Arc Credit Union . . Lowell, Mass. 

La Caisse Populaire de Notre Dame des Canadiens or 

Credit Union. Worcester, Mass. 

Notre Dame de Lourdes Credit Union Lowell, Mass 
Notre Dame du Perpetuel Secours Credit Union 

Holyoke, Mass. 

Sacred Heart Credit Union . New Bedford, Mass. 
St. Anne Credit Union . . . New Bedford, Mass. 

St. Jean Baptiste Parish Credit Union . Lynn, Mass. 
St. Joseph’s Credit Un:on . . . Waltham, Mass. 

St. Mary’s Parish Credit Union Marlborough, Mass. 


37 










CREDIT UNIONS IN MASS. 


Jewish 


Beverly Investment Credit Union 
East Boston Credit Union 
Hampden Credit Union 
Lord Beaconsfield Credit Union 
New England Credit Union . 
North End Union Credit Union 
Roxbury Credit Union 
Salem Workingmen’s Credit Union 
Suffolk Credit Union 
West End Credit Union . 
Worcester Credit Union . 
Progressive Credit Union 


Beverly, Mass. 
East Boston, Mass. 

Roxbury, Mass. 
East Boston, Mass 
Worcester, Mass. 
Boston, Mass. 
Roxbury, Mass. 
Salem, Mass. 
East Boston, Mass. 
Boston, Mass. 
Worcester, Mass. 
Worcester, Mass. 


AGRICULTURAL 

Jewish Farmers’ Co-operative Credit Union of Bristol 
County. Attleboro, Mass. 


SOCIETIES 

Augustov Credit Union .... Boston, Mass. 
Brockton Credit Union Brockton, Mass. 

United Tailors Association Credit Union Boston, Mass. 
Zion Credit Union .... Worcester, Mass. 


STORES, FACTORIES, ETC. 

Stores 

Asco Credit Union, Employees A. Shuman Co. 

Boston, Mass. 

Elmco Credit Union, Employees Leopold Morse Co., 

Boston, Mass. 

Gilco Credit Union, Employees Gilchrist Co., 

Boston, Mass. 

Shepard Norwell Credit Union, Employees Shepard 
Norwell Co. Boston, Mass. 


38 





CREDIT UNIONS IN MASS. 


Public Service Corporations. 

Boston & Maine R. R. Employees Credit Union, B. & 
M. R. R. employees .... Boston, Mass. 
Telephone Workers Credit Union, New England Tel. 
& Tel. Co.Boston, Mass. 


Factories 

D. M. C. Credit Union, Dennison Mfg. Co. Employees, 

Framingham, Mass. 
Neponset Credit Union, Bird & Son, 

East Walpole, Mass. 
Waltham Watch Credit Union, Waltham Watch Fact¬ 
ory . Waltham, Mass. 

Whitson Credit Union, D. Whiting & Son, 

Charlestown, Mass. 


Banks 

Cosmopolitan Credit Union, Cosmopolitan Trust Co., 

Boston, Mass. 


Labor Organizations 

Labor Circle Credit Union, Local Lodge Labor Circle* 

Lynn, Mass. 

State Street Credit Union, Gryzmish & Son, 

Boston, Mass. 

Worcester Central Labor Credit Union 

Worcester, Mass. 


Government and City Employees 
City of Boston Employees Credit Union 

Boston, Mass. 

City of Quincy Employees Credit Union, 

Quincy, Mass. 

Navy Employees Credit Union . Charlestown, Mass. 


39 







CREDIT UNIONS IN MASS. 


Towns and Cities 


Beverly Credit Union 
Dorchester Credit Union . 
Greater Boston Credit Union 
Industrial Credit Union . 
Lawrence Credit Union . 
Mansfield Credit Union 
Progressive Workmen’s Credit 
Revere Credit Union 
Shawmut Credit Union . 
Traders’ Credit Union 
Winthrop Credit Union . 


Beverly, 
Dorchester, 
Boston, 
Boston, 
Lawrence, 
. < Mansfield, 
Union Malden, 
Revere, 
Boston, 
Boston, 
Winthrop, 


Mass. 

Mass. 

Mass. 

Mass. 

Mass. 

Mass. 

Mass. 

Mass. 

Mass. 

Mass. 

Mass. 


40 









■^3 

==51 


Sf 


ALL CREDIT UNIONS ARE NOW SUBJECT 
TO THE PROVISIONS OE THIS ACT, PRE¬ 
VIOUS LEGISLATION RELATING THERETO 
HAVING BEEN REPEALED. 

(General Act) 

(Chap. 268) 

An Act relative to the incorporation and man¬ 
agement of credit unions. 

Be it enacted, etc., as follows: 

Section 1. A corporation organized under this act 
shall include in the corporate name the two words 
“credit union,”to which may be added the word “bank." 
Other distinguishing words may be used. The words 
“credit union,” whenever hereinafter used, shall apply 
to a corporation heretofore organized under the provi¬ 
sions of chapter four hundred and nineteen of the acts 
of the year nineteen hundred arid nine, or hereafter 
organized under the provisions of this act. 

Section 2. Seven or more persons, resident in this 
commonwealth, who have associated themselves by an 
agreement in writing with the intention of forming a 
corporation for the purpose of accumulating and 
investing thp savings of its members and making loans 
to members for provident purposes, may, with the 
consent of the board of bank incorporation, become a 
corporation upon complying with all of the provisions 
of section three of this act. The board of bank incor¬ 
poration is hereby authorized to grant such consent 
when it is satisfied that the proposed field of operation 
is favorable to the success of such corporation, and that 
the standing of the proposed incorporators is such as to 
give assurance that its affairs will be administered in 
accordance with the spirit of this act. 


41 









GENERAL ACT 


Section 3. Credit unions shall be organized under 
the provisions, so far as applicable, of sections two to 
six, inclusive, of chapter three hundred and seventy-four 
of the acts of the year nineteen hundred and four, as 
amended by section four of chapter two hundred and 
four of the acts of the year nineteen hundred and six 
and any other amendments thereof, except that the fee 
for filing and recording the articles of organization, 
including the issuing by the secretary of the common¬ 
wealth of the certificate of incorporation, shall be five 
dollars. 

The provisions relating to supervision by the bank 
commissioner, so far as applicable, of chapter five hun¬ 
dred and ninety of the acts of the year nineteen hundred 
and eight and any amendments thereof shall apply to 
credit unions incorporated under this act. 

Section 4. No person, partnership or association, 
and no corporation, except such as have heretofore been 
incorporated under the provisions of chapter four hun¬ 
dred and nineteen of the acts of the year nineteen hun¬ 
dred and nine and such as shall hereafter be incorpo¬ 
rated under the provisions of this act, shall hereafter 
transact business under any name or title which con¬ 
tains the two words “credit union.” The proceedings 
authorized and the penalties imposed under the provi¬ 
sions of section seventeen of chapter five hundred and 
ninety of the acts of the year nineteen hundred and 
eight and all acts in amendment thereof or in addition 
thereto, so far as applicable, shall apply in all cases of 
violation of the provisions of this section. 

Section 5. A credit union may receive the savings 
of its members in payment for shares or on deposit; may 
lend to its members at reasonable rates, or invest, as 
hereinafter provided, the funds so accumulated; and. 
may undertake such other activities relating to the 
purpose of the association, as its by-laws may authorize, 
any provisions in section one of chapter one hundred 
and fourteen of the Revised Laws notwithstanding. 


42 




GENERAL ACT 


Section 6 . The by-laws shall prescribe the name of 
the corporation, the purposes for which it is formed, 
the conditions of residence or occupation which qualify 
persons for membership, the par value of the shares of 
capital stock and the maximum number of shares which 
may be held by any one member, the conditions on 
which shares may be paid in, transferred and with¬ 
drawn, the conditions on which deposits may be 
received, and withdrawn, the method of receipting for 
money paid on account of shares or deposited, the 
number of directors and number of members of the 
credit committee, the duties of the several officers, the 
fines, if any, which shall be charged for failure to meet 
obligations to the corporation punctually, the date 
of the annual meeting of members, the manner in which 
members shall be notified of meetings, the number of 
members which shall constitute a quorum at meetings, 
and such other regulations as may seem necessary. 

Section 7. No credit union shall receive deposits or 
payments on account of shares, or make any loans, 
until its by-laws have been approved in writing by the 
bank Commissioner, nor shall any amendments to its 
by-laws become operative until they have so been 
approved. 

Section 8 . All property of a credit union, except 
real estate, and all capital stock in a credit union shall 
be exempt from state and local taxation, except legacy 
and succession taxes. 

Section 9. The capital of a credit union shall be 
unlimited in amount. Shares of capital stock may be 
subscribed for and paid in such manner as the by-laws 
shall prescribe, except that the par value of shares shall 
not exceed ten dollars. 

Section 10. Shares may be issued and deposits 
received in the name of a minor, and such shares and 
deposits may, in the discretion of the directors, be 
withdrawn by such minor, or by his parent or guardian, 
and in either case payments made on such withdrawals 


43 




GENERAL ACT 


shall be valid and shall release the said corporation from 
any and all liability to the minor, parent, or guardian. 
A minor under the age of eighteen years shall not have 
the right to vote. If shares are held or deposits made 
in trust, the name and residence of the beneficiary shall 
be disclosed, and the account shall be kept in the name 
of such holder as trustee for such person. If no other 
notice of the existence and terms of such trust has been 
given in writing to the corporation, such shares or 
deposits may, upon the death of the trustee, be trans¬ 
ferred to or withdrawn by the person who was named 
by the trustee as the beneficiary or by his legal repre¬ 
sentatives, and such transfer or withdrawal shall 
release the corporation from any and all liability to any 
other claimant upon such stock or deposit. 

Section 11. The capital, deposits and surplus funds 
of a credit union shall be invested in loans to members 
with the approval of the credit committee as provided 
in section seventeen of this act, and any capital, deposits 
or surplus funds in excess of the amount for which loans 
shall be approved by the credit committee may be 
deposited in savings banks or trust companies incor¬ 
porated under the laws of this commonwealth, or in 
national banks located therein, or may be invested in 
the bonds of any other credit union or any farmland 
bank incorporated under the laws of this commonwealth 
or in any securities which are at the time of their 
purchase legal investments for savings banks in this 
commonwealth, or, with the approval of the bank com¬ 
missioner, may be deposited in other credit unions or 
may be invested in the shares of other credit unions or 
of farmland banks or co-operative banks incorporated 
under the laws of this commonwealth; provided , that the 
total amount invested in the shares of other credit 
unions, farmland banks or co-operative banks shall not 
exceed thirty per cent of the capital and surplus, and 
that not more than twenty per cent shall be invested 
in the shares of other credit unions, nor more than 


44 




GENERAL ACT 


twenty per cent in farmland bank shares, nor more 
than twenty per cent in co-operative bank shares. 

Section 12. The fiscal year of every credit union 
shall end at the close of business on the last business 
day of October. 

Section 13. The annual meeting of the corporation 
shall be held at such time and place as the by-laws 
prescribe, but must be held within thirty days after the 
close of the fiscal year. Special meetings may be 
called by a majority of the directors or of the super¬ 
visory committee, and shall be called by the clerk upon 
written application of ten or more members entitled to 
vote. Notice of all meetings of the corporation and of 
all meetings of the board of directors and of committees 
shall be given in the manner prescribed by the by-laws. 
No member shall be entitled to vote by proxy or to 
have more than one vote, and, after a credit union has 
been incorporated one year, no member thereof shall 
be entitled to vote until he has been a member for more 
than three months. 

The members at each annual meeting shall fix the 
amount of the entrance fee for the ensuing year, which 
may be made proportional to the number of shares 
issued to a member, the maximum amount to be loaned 
any one member, and, upon recommendation of the 
board of directors, may declare dividends in accordance 
with the provisions of section twenty-two of this act. 

At any annual o,r special meeting the members may 
review the acts of the credit committee or of the board 
of directors, and may reverse any decision of the credit 
committee or of the board of directors by a three-fourths 
vote of the members present and entitled to vote: 
provided , that such three-fourths vote comprises a 
majority of all of the members of the credit union. 

In the event of the death, resignation, or removal 
from office of the board of directors or of any member 
thereof, or of the credit committee or of any member 
thereof, the members of the credit union at a special 


45 






GENERAL ACT 


meeting, called for the purpose, may elect other mem¬ 
bers to fill the vacancies until the next annual meeting. 

At any annual or special meeting the members of a 
credit union may amend the by-laws by a three-fourths 
vote of the members present and entitled to vote; 
provided , that a copy of the proposed amendment or 
amendments shall have been sent to each member with 
the notice of the meeting. 

Section 14. The business and affairs of a credit 
union shall be managed by a board of not less than five 
directors, a credit committee of not less than three 
members, and a supervisory committee of three mem¬ 
bers to be elected at the annual meeting of ths corpo¬ 
ration. Unless the number of members of the credit 
union is less than eleven, no member of said board 
shall be a member of either of sajld committees, nor 
shall one person be a member of more than one com¬ 
mittee, and all the members of said board and of said 
committees, as well as all officers whom they may elect, 
shall be sworn to the faithful performance of their 
duties and shall hold their several offices until others 
are elected and qualified in their stead. A record of 
every such qualification shall be filed and preserved 
with the records of the corporation. Members of the 
supervisory committee shall be elected annually for a 
term of one year. Directors and members of the credit 
committee shall be elected for a term of not less than 
one year nor more than three years, as the by-laws shall 
provide. If the term is more than one year, they shall 
be divided into classes, and an equal number, as nearly 
as may be, elected each year. If a director or a member 
of any of these committees ceases to be a member of 
the credit union, his office shall thereupon become 
vacant. 

Section 15. The directors, at their first meeting 
after the annual meeting of the corporation, shall elect 
from their own number a president, a vice president, a 
clerk and a treasurer, who shall be the executive officers 


46 




GENERAL ACT 


of the corporation, and who shall hold office until their 
usccessors shall have been elected and qualified. The 
offices of clerk and treasurer may be held by the same 

person. 

The board of directors shall have the general direc¬ 
tion of the affairs of the corporation, and shall meet as 
often as may be necessary. It shall be their special 
duty to act upon all applications for membership and 
upon the expulsion of members, to fix the amount of 
the surety bond required of any officer having custody 
of funds, to determine the rate of interest on loans and 
deposits, to fill vacancies in the board of directors until 
new members shall be elected and qualified, to make 
recommendations to the members of the credit union 
relative to the amount of entrance fee to be charged 
new members, the maximum amount to be loaned any 
one member, the advisability of declaring a dividend 
and the amount to be declared, the need of amendments 
to the by-laws, and any other matters upon which, in 
their opinion, the members should act at any annual 
or special meeting. When authorized so to do by the 
members at any annual meeting or at a special meeting 
called for the purpose, the board of directors, with the 
approval of the bank commissioner, may borrow money 
for the purpose of re-loaning to members. 

Section 16. The supervisory committee shall 
inspect from time to time the securities, cash and 
accounts of the corporation and shall keep fully informed 
of the financial condition of the corporation and shall 
supervise the acts of its board of directors, credit com¬ 
mittee and officers. At any time the supervisory 
committee, by a unanimous vote, may suspend any 
officer of the corporation, or any member or members 
of the credit committee or of the board of directors, and, 
by a majority vote, may call a meeting of the share¬ 
holders to consider any violation of this act or of the 
by-laws, or any practice of the corporation which, in 
the opinion of the committee, is unsafe or unauthorized. 

47 




GENERAL ACT 


Within seven days after the suspension of any officer, 
or any member or members of the credit committee or 
of the board of directors, the supervisory committee 
shall cause notice to be given of a special meeting of 
the members of the credit union to take such action 
relative to such suspension as may seem necessary. 
The supervisory committee may make temporary 
appointments to fill vacancies caused by the absence, 
illness or suspension of any officer, director, or member 
of any committee, and shall fill any vacancies in its 
own number until new members shall have been duly 
elected and qualified. The board of directors and the 
supervisory committee, acting jointly, shall make 
appointments to fijl vacancies in the credit committee 
until new members of the committee shall be duly 
elected and qualified. 

Section 17. The credit committee shall hold 
meetings, of which due notice shall be given to its 
members, for the purpose of considering applications 
for loans, and no loan shall be made unless all members 
of the committee who are present when the application 
is considered, and at least two-thirds of all the members 
of the committee, approve the loan and are satisfied 
that it promises to benefit the borrower. All applica¬ 
tions for loans shall be made in writing and shall state 
the purpose for which the loan is desired and the 
security offered. 

Section 18. Loans upon the security of first mort¬ 
gages upon farmlands shall in no case exceed in amount 
fifty per cent of the value of the property pledged as 
security, and shall be for’the following purposes only: 
(a) the clearing, draining or otherwise reclaiming and 
permanently improving agricultural lands; ( b) the 
providing of facilities for irrigation; ( c) the planting 
and early care of orchards; ( d ) the erection of silos, 
cold storage plants, greenhouses and permanent farm 
buildings; ( e) the purchase of farms and farm lands 
for personal occupation and management; (/) the dis 


48 




GENERAL ACT 


cnarge of existing farm mortgages; and, (g) subject to 
the approval of the bank commissioner, such other 
improvements of a permanent nature as, in the opinion 
of the directors, tend to develop agricultural resources. 
The mortgage deeds securing such loans shall contain 
a provision for immediate foreclosure if the money 
lent is applied in whole or in part to purposes not hereby 
authorized, or if, in the opinion of the directors, it is 
being spent unwisely or wastefully. 

A credit union may, with the approval of the bank 
commissioner, by vote of its board of directors, issue, 
sell and trade in its own collateral trust bonds, which 
shall be known and described as farmland bonds and 
shall be secured as hereinafter provided by the deposit 
of first mortgage notes on farm lands and the mortgages 
securing the same. In case of failure of a credit union 
to pay the interest upon its bonds or the principal when 
due, the bonds shall be an underlying lien on all its 
assets and the bank commissioner shall forthwith take 
possession of the assets and wind up the affairs of the 
corporation. Loans on the security of first mortgages 
on farm lands shall be made, and bonds of credit 
unions secured thereby shall be issued, in accordance 
with the provisions of chapter two hundred ind thirty- 
one of the General Acts of the current year relating to 
farmland mortgages and farmland bonds, and any acts 
in amendment thereof or in addition thereto, so far as 
applicable. 

Section 19. No member of the board of directors 
or of either the credit or supervisory committee shall 
receive any compensation for his services as a member 
of the said board or of such committee, nor shall any 
member of the credit or supervisory committee, directly 
or indirectly, borrow from the corporation or become 
surety for any loan or advance made by it. 

No member of the board of directors shall, directly 
or indirectly, borrow from the corporation or become 
surety for any loan or advance made by it, unless such 


49 






GENERAL ACT 


loan or advance shall have been approved at a meeting 
of the members of the credit union by a majority vote 
of those present, and the notice of such meeting shall 
have stated that the question of loans to directors 
would be considered at such meeting. 

The officers elected by the board of directors may 
receive such compensation as the board shall authorize. 

Section 20. Before the payment of an annual 
dividend in any year, there shall be set apart as a guar¬ 
anty fund twe,nty per cent of the net income which has 
accumulated during the fiscal year, except as herein¬ 
after provided. Said fund and the investments thereof 
shall belong to the corporation and shall be held to 
meet contingencies or losses in its business. All 
entrance fees shall be added at once to the guaranty 
fund. Upon recommendation of the board of directors, 
the members at any annual meeting may increase, and, 
whenever said fund equals or exceeds the amount of 
capital stock actually paid in, may decrease, the pro¬ 
portion of profits which is required by this section to be 
set apart as a guaranty fund: provided , that, if the 
corporation holds stock in other credit unions or in 
farmland banks, the percentage of profits to be set 
apart as a guaranty fund shall not be decreased until 
the amount o,f the fund equals or exceeds the amount 
of capital stock of the corporation actually paid in and 
in addition thereto the amount actually paid for the 
shares of stock in such credit unions and farmland banks. 

Section 21. Immediately before a meeting of the 
directors called to consider the recommendation of a 
dividend, the supervisory committee shall mak,e a 
thorough audit of the receipts, disbursements, income, 
assets and liabilities of the corporation for the fiscal 
year, and shall make a full report thereon to the 
directors. Said rqport shall be read at the annual 
meeting and shall be filed and preserved with the 
records of the corporation. 


50 




GENERAL ACT 


Section 22. A tthe annual meeting, a dividend may 
be declared from income which has been actually 
collected during the fiscal year next preceding and 
which remains after the deduction of all expenses, 
losses, interest on deposits, and the amount required 
to be set apart as a guaranty fund, or such dividend 
may be declared in whole or in part from undivided 
earnings of preceding years, not to exceed twenty per 
cent thereof in any one year, provided such earnings 
are a part of the surplus of the corporation in excess of 
all requirements of the guaranty fund. 

Such dividends shall be paid on all fully paid shares 
outstanding at the close of the fiscal year, but shares 
which become fully paid during the year shall be 
entitled only to a proportional part of said dividend, 
calculated from the first day of the month following 
such payment in full. Dividends due to a member 
shall be paid to him in cash or credited to the account 
of partly paid shares for which he has subscribed. 

Section 23. Within twenty days after the last 
business day of October in each year, every credit 
union shall make to the bank commissioner a report 
in such form as he may prescribe, signed by the pres¬ 
ident, treasurer and a majority of the supervisory 
committee, who shall certify and make oath that the 
report is correct according to their best knowledge and 
belief. Any credit union which neglects to make the 
said report within the time herein prescribed shall 
forfeit to the commonwealth five dollars for each day 
during which such neglect continues. 

Section 24. The board of directors may expel from 
a credit union any member who has not carried out his 
engagements with the credit union, or who has been 
convicted of a criminal offence, or who neglects or 
refuses to comply with the provisions of this act or of 
the by-laws, or whose private life is a source of scandal, 
or who habitaully neglects to pay his debts, or who 
shall become insolvent or bankrupt, or who shall have 

51 




GENERAL ACT 


deceived the corporation or any committee thereof 
with regard to the use of borrowed money; but no 
member shall so be expelled until he has been informed 
in writing of the charges against him, and an oppor¬ 
tunity has been given to him, after reasonable notice, 
to be heard thereon. 

The amounts paid in on shares or deposited by 
members who have withdrawn or have been expelled 
shall be paid to them, in the order of withdrawal or 
expulsion, but only as funds therefore become available 
and after deducting any amounts due by such members 
to the credit union. Such expulsion shall not operate 
to relieve a member from any remaining liability to 
the credit union. 

Section 25. At any meeting specially called for the 
purpose the members, upon recommendation of not 
less than two-thirds of the board of directors, may 
dissolve the corporation by the vote of two-thirds of 
the members of the credit union entitled to vote. A 
committee of three shall thereupon be elected to 
liquidate the assets of the corporation under the direc¬ 
tion of the bank commissioner, and each share of the 
capital stock, according to the amount paid in thereon, 
shall be entitled to its proportional part of the assets 
in liquidation after all deposits and debts have been 
paid. 

Section 26. Chapter four hundred and nineteen of 
the acts of the year nineteen hundred and nine and 
chapter four hundred and thirty-seven of the acts of 
the year nineteen hundred and fourteen are hereby 
repealed. All credit unions incorporated prior to the 
passage of this act shall be hereafter subject to the 
provisions of this act, but the provisions of this act 
shall not affect any rights acquired under any contract 
made by such credit unions prior to the passage of this 
act. The provisions of this act shall not be rendered 
inoperative or be limited or otherwise affected by any 
acts or parts of acts inconsistent therewith. [Approved 
May 20, 1915. 


52 




GF 

ft 


3 

S 


SPECIAL ACT 

(Chap. 281) 

An Act to incorporate the Massachusetts credit 

UNION ASSOCIATION. 

Be it enacted, etc., as follows: 

Section 1. Felix Vorenberg, Edward A. Filene, 
Abraham K. Cohen and Max Mitchell, their associates 
and successors, are hereby made a corporation by the 
name of Massachusetts Credit Union Association, to be 
located in Boston or in such other city or town in this 
commonwealth as the corporation may determine, and 
with the rights and powers and subject to the duties 
and obligations hereinafter granted or imposed. 

Section 2. The government of said corporation 
shall be vested in such officers and in a board of dir¬ 
ectors to consist of such number and to be chosen in 
such manner as the by-laws of the corporation may pre¬ 
scribe. The by-laws may also prescribe the manner in 
which and the terms under which persons may become 
members of the corporation. 

Section 3. The purposes of the corporation shall be 
to disseminate information in respect to the benefits of 
credit unions authorized by chapter two hundred and 
sixty-eight of the General Acts of the year nineteen 
hundred and fifteen and acts in amendment thereof and 
supplementary thereto; to organize and assist in the 
organization of credit unions; to make loans to credit 
unions at a rate not exceeding six per cent per annum 
and generally to promote and assist credit unions. 

Section 4. Credit unions are hereby authorized, 
subject to the approval of the bank commissioner, to 
borrow money from the corporation hereby established. 

Section 5. The said corporation, if and whenever 
the by-laws so provide, may issue to its members from 


53 






SPECIAL ACT 


time to time such amount as its directors may deter¬ 
mine of capital stock in shares of not less than five dol¬ 
lars, par value, and at no time in the aggregate exceed¬ 
ing one hundred thousand dollars, payable in cash at 
par. The corporation may by its by-laws provide for 
fixing the amount of such capital stock, for the issue 
thereof, and for determining the rights and powers of 
the holders of shares. 

Section 6. This act shall take effect upon its pas¬ 
sage. (Approved April 13, 1917.) 




















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